With all-electric vehicles (EVs) just four to six years away from having a lifetime cost that matches combustion vehicles, it’s safe to say that owning an EV will become more and more attractive with time.
As the popularity of EVs increases, the need for charging stations and better ways to charge have also increased.
All EVs come with a standard Level-1 (L1) home connector kit, which connects your car battery to a standard outlet in your garage. The downside to this charger is that it takes eight to twelve hours to fill up a drained battery.
For a faster charge, you can install a Level-2 (L2) EV charger in your home. This charger only takes four to six hours to fill up a drained battery. Many businesses and public facilities are also adding L2 EV chargers to their parking lots and garages to allow employees or customers to charge their cars during the day.
The Department of Energy estimates that EV owners do 80-90% of their needed charging at home or work, most likely on L1 or L2 chargers.
We have good news for those wanting to purchase an EV charger but are hesitant about the price. If you’re thinking of adding an L2 charger to your home or business, the federal and state governments currently offer tax credits to reduce the cost of the installation and equipment. Also, before installing your EV charger, make sure to notify your electric utility to see if they also offer incentives.
In this blog, we’ll explain the tax credits and incentives that you can enjoy with an EV charger:
Let’s start by looking at the federal tax credit and how you can enjoy the benefits of an eco-friendly choice that helps you out financially.
Want a quote for a worry-free EV charger installation in your Buffalo, NY home?
Call Roy's PowerWorx at 716-218-1106 or schedule an appointment online today. Our licensed electricians will give you upfront pricing and provide information about available tax credits and rebates. See our home EV charger installation page for more details.
The Federal Tax Credit for EV Chargers
The federal government currently offers a tax credit for residential and commercial EV charger installations and hardware costs. It’s called the Alternative Fuel Infrastructure Tax Credit, and here is how it breaks down:
- Residential EV chargers tax credit: 30% of total installation cost, up to $1,000
- Commercial EV chargers tax credit: 30% of total installation cost, up to $30,000
The total installation cost includes hardware, shipping, and installation fees, but not permit or inspection expenses. These tax credits apply to eligible EV chargers installed between 2018 and December 31st, 2021.
The New York State Tax Credit for EV Chargers
If you're a business owner, or maybe you want your company to install EV charging stations, you're in luck. The NY state government is currently offering a tax credit to businesses called the Alternative Fuels and Electric Vehicle Recharging Property Credit.
Eligible companies and organizations can claim an income tax credit of up to $5,000 after purchasing and installing an EV charging station. This tax credit applies to any tax year from 2013 onward and expires on December 31st, 2022.
Visit the NY Department of Taxation and Finance website for more information about this tax credit.
Other EV-Charger Incentives To Look For
In addition to the tax credits above, you’ll also want to look for incentives offered by state entities and local utility companies to help cover the cost of EV charger installation or usage.
For example, a current incentive is the EV Make-Ready Program, supported by major utility providers like National Grid and Con Edison. This program aims to help businesses and multi-unit dwellings add EV charging stations for up to 100% of the infrastructure cost.
Note: As of September 2021, some state-wide rebate programs that covered residential and commercial customers (such as Charge Ready NY) have expired or exhausted funding. To see up-to-date rebates that may become available in the future, visit the Charging Station Programs page on the New York State website.
Interested in a Worry-Free EV Charger Installation for Your Home? Contact Roy’s PowerWorx.
Contact Roy's PowerWorx today. Our licensed electricians can give you upfront pricing on the cost to install an L2 EV charger in your Buffalo, NY home. We can also help you figure out if you're eligible for charging rebates, tax credits, or incentives. Visit our home EV charger installation page for pricing information and to learn more about our installation process.